The FCA has published Policy Statement 14/6: Competition in the markets for services provided by a recognised investment exchange: feedback on CP13/6 and final Handbook text (PS14/6).
In PS14/6, the FCA reports on the main issues arising from Consultation Paper 13/6: Competition in the markets for services provided by a Recognised Investment Exchange: proposed amendments to REC (CP13/6) and publishes final rules and guidance.
In PS14/6, the FCA states that with the exception of one modification it will implement the proposals to amend the Recognised Investment Exchanges and Recognised Clearing Houses sourcebook (REC) as set out in CP13/6.
The FCA has amended its proposed change to REC 6.7 (notification rules for overseas recognised bodies) in order to limit the scope of the obligation to events having a ‘material’ effect on competition, to bring this into line with the rule applicable to UK Recognised Investment Exchanges (RIEs). The Handbook Instrument published in PS14/6 also provides that a change to REC 3.26 (proposals to make regulatory provision) comes into effect on 2 June 2014. This is to give UK RIEs time to review and update their procedures for making notifications.
The other changes to REC come into effect on 2 May 2014.
The FCA states that RIEs and recognised overseas investment exchanges (ROIEs) will need to review their internal processes for submitting notifications and reports in light of the changes to REC 3.26 (for UK RIEs) and REC 6.7 (for ROIEs).